Factors Impacting Housing, Essay Example

This research paper for econometrics will focus on what factors affect housing prices. Factors include Gross Domestic Product (GDP) per capita, salary, the cost of building, the acquisition cost of land, consumer confidence, mortgage availability, geographical factors, unemployment etc. The housing market is very sensitive to inflation, which is why housing prices in certain locales have oscillated profoundly in the past decade. In this paper, I will analyze why the state of California has experienced such high housing costs in comparison to other states in America between 2010 and the present day. Many of the major metropolitan locales are on the list of the most expensive places to live in the U.S. An amalgam of factors contribute to these trends and must be taken into consideration as independent and dependent variables. State policymakers are concerned about the lack of affordable housing despite the ubiquity of gentrification. Conditions in the housing market profoundly alter in the aftermath of the 2007 housing bubble. This paper will thus focus on the impact of local land use ordinances on access to affordable housing for certain demographic groups as a result of elevated housing costs within an milieu that has struggled because of the crash of the housing market.

Data gathered for regression analysis will cover a large volume of housing units in different cities in California, which will come from a variety of critical sources: first the MLS Data Quick from certain years will provide data for all of the independent variables and the dependent variable, only excluding the main explanatory variable. The regression controls for external factors including the structural characteristics of housing, demographics, neighborhood characteristics, foreclosure patterns, location, and the characteristics of local land ordinances will be considered. The regulatory environment of local land use and its degree of stringency will be the proxy for an explanatory variant component. In addition, states appoint regional agencies that are responsible for the implementation of housing needs at the regional level. Thus, the regional agency must procure data to forecast and assign housing growth to counties and growth in a particular region. These sources will enable me to analyze various regulatory barriers stand in the way of affordable housing in various regions in the state of California. Local Land use policies and regulations will be taken into consideration and the main focus of this research project in addition to demographic trends and how demographics undergird consumer confidence in the housing market for a particular locale. This topic is meaningful because of the recent financial crisis, and this research will examine various intervention effects that retain currency both in recent history and in the future. A transnational lens would also be useful to add nuance to this econometric project.

Works Cited

Schilling, J.D., C.F. Sirmans, and K.A. Guidry. “The Impact of State Land-Use Controls on Residential Land Values.” Journal of Regional Science 30.1(1991): 83-92. Web. Urbanpolicy.berkeley.edu/pdf/QR2005.pdf

SGS Economics and Planning. “Understanding the Property and Economic Drivers of Housing.” SGS Economics & Planning. 2013. Web. 7 Oct. 2015. www.melbourne.vic.gov.au/Building and Planning/Future_Growth/Documents/Understanding_Property_Economics_Drivers_Housing.p  df

United States Department of Housing and Urban Development (HUD). “‘Why not in our Community?’: Removing Barriers to Affordable Housing.  HUD. Feb. 2005. Web. 7 Oct 2015. HttpL//www.huduser.org/Publicatins/pdf/wnioc.pdf

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